that economist forgets to mention the nzd/aud forex rate would probably go over 1 to 1 if interest rates in nz become more attractive than aus. this would cause further contraction in nz gdp as exporters slowly become uncompetitive across the ditch and lay off staff in nz and cut costs etc to remain in the game. also he is placing all his eggs on the nz housing market/ construction staying strong. but as we already see developers are going bust all over the place so there wont be enough of them left soon to maintain the big construction end of the market there this part of construction will decline
be a black day in nz for sure when depositers lose all there money
New Zealand is the only OECD country without some form of deposit protection. it means forcing all the mums, dads and their kids with bank deposits to take a financial ‘haircut’ to help shore up a failing bank.
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